What Approach Did Canada First Decide to Take with Respect

question 9

Multiple Choice

What approach did Canada first decide to take with respect to convergence with IFRSs?

• A) Harmonization of Canadian GAAP with IFRS.
• B) Substituting IFRS's for Canadian GAAP when approved by the IASB.
• C) Adopting some but not necessarily all IFRSs by reviewing them on a case by case basis.
• D) Reviewing them with all publically accountable entities to see which ones would be acceptable.

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Definitions:

Passive Strategy

A portfolio decision that avoids any direct or indirect security analysis. See passive management.

Index Funds

Investment funds designed to replicate and track the components of a market index.

Sharpe Measure

A financial metric used to measure the performance of an investment compared to its risk, indicating how much excess return you are receiving for the extra volatility endured by holding a riskier asset.

Mean-Variance Analysis

Evaluation of risky prospects based on the expected value and variance of possible outcomes.